Employees’ pay, pension cannot be deferred: SC

The Supreme Court has held that the government cannot defer pay and pension since they are rightful entitlements of the employees.

The ruling came on a petition by the Andhra Pradesh government on the High Court examining a petition by retired additional district judge Dinavahi Lakshmi Kameswari, challenging suspension of salary and pension of its employees in view of the COVID-19 pandemic.

A Bench of Justices Dhananjaya Y Chandrachud and MR Shah gave the only relief to the state government in its verdict on February 8 to reduce to 6 per cent per annum the interest of 12 per cent per annum fixed by the High Court on the deferred salary and pension for the period of delay.

Noting that the state government has complied with its directions to pay the outstanding dues in two tranches, the Apex Court order said: "Salaries are due to the employees of the State for services rendered. Salaries in other words constitute the rightful entitlement of the employees and are payable in accordance with law. Likewise, it is well settled that the payment of pension is for years of past service rendered by the pensioners to the State. Pensions are hence a matter of a rightful entitlement recognised by the applicable rules and regulations which govern the service of the employees of the State."